Kairiki Energy Limited has entered into a Memorandum of Understanding (MOU) for the acquisition of two significant onshore oilfields in northern China.

The MOU between Kairiki, Beijing Junlun Runzhong Science & Technology Co Limited (Junlun) and Hefei Xinxin Petrochemical Limited (Xinxin or the Operator) contemplates the acquisition of Junlun's 100% interest in Xinxin, the holder of exclusive rights to explore and develop two oilfields, Daerqi and WengTe, in Innner Mongolia, China.

These fields were discovered by Sinopec in the mid 1990s, and Xinxin took over operation in 2008. Since that time, Xinxin has brought the Daerqi field on commercial production and carried out thermal and chemical pilots in this shallow oilfield. Current production is approximately 300 bopd, with the potential to increase production to at least 5,000 bopd within 3 years. With an oil in place estimated to be in excess of 200 million barrels1, the potential for Kairiki is significant.

Tags: Kairiki Energy Limited